Fannie Mae and Freddie Mac have sold 171,333 nonperforming loans, with a total unpaid balance of $31.4 billion, from program inception in 2014 through June 30, 2024, according to the Non-Performing Loan Sales Report released today by the Federal Housing Finance Agency. On average, the NPLs had a delinquency of 2.8 years and an average current loan-to-value ratio of 82%. More than 39% of the NPLs sold were in New Jersey, New York and Florida.
The report also surveyed borrower outcomes based on the 165,643 NPLs that were settled by Dec. 31, 2023. Of the NPL sales on borrower-occupied homes, 47% have resulted in foreclosure avoidance, which exceeded the rates for both non-borrower-occupied (44.7%) and vacant (17.7%). NPLs on vacant homes have had a much higher rate of foreclosure (75.7%) than that of borrower-occupied properties (28.9%) and non-borrower-occupied properties (31.8%). The average UPB of NPLs sold was $183,055.
